Coast Surgery Center of Huntington Beach, CA is suing some of the largest health insurance providers in the country; United Health Care, Cigna, Aetna, Anthem Blue Cross of California, Blue Shield of California, Blue Cross Blue Shield Associates, and all Blue Cross Blue Shield affiliated companies for illegal, coercive, unfair, fraudulent practices, bad faith and deceptive advertisements.
When patients need a provider, they often look for an in-network provider to save them money but when a patient requires an out-of-network specialist or wants a provider they trust, insurance carriers like Blue Cross, utilize a separate rate for these out-of-network providers. Even before services are rendered to a patient, the out-of-network provider and facility obtain authorization with the insurance carrier for approval and are provided with the usual, customary, and reasonable (UCR) rate. Based on the UCR rate provided by the insurance, the provider and patient understand that if they are to proceed, how much the insurance company will reimburse.
This lawsuit arises because Blue Cross is intentionally underpaying Coast Surgery Center even after Coast had obtained authorization and was provided with the UCR rates from Blue Cross. Blue Cross’s scheme was to significantly reduce the reimbursement rate from UCR to below Medicare rate and this is a “take it or leave it” offer.
For example, Coast Surgery Center billed Blue Cross $49,550 for a surgery and Blue Cross paid $202.99! Medical facilities cannot stay in business and offer quality service to patients when they are unable to cover rent, let alone utilities, supplies, and staff. Why would a patient purchase insurance coverage that’s hundreds of dollars a month when they can walk into a surgery center and just pay only $202.99 for their surgery? It’s inconceivable that Blue Cross can consider this “usual, customary, and reasonable.” Blue Cross was paying 75% – 100% of approved out-of-network charges to Coast Surgery Center prior to 2019 but since 2019 to July 2022, Blue Cross has only paid 1.59% of bills totaling over $6M, for the same procedures they have approved before, so how is this “usual, customary, and reasonable?”
Blue Cross collects billions of dollars from insurance premiums each year but is too greedy to pay out the providers that have rendered services to patients. Blue Cross is the middle man taking money from customers, paying pennies to the dollar to providers, and keeping a large chunk for themselves without having to lift a finger. Contrary to their claims that they care about reducing member healthcare costs, patients have been forced to pay more for their healthcare as a result of their scheming practices, while giving less access to providers of choice. If Blue Cross is not stopped, they will ruin out-of-network medical providers, patients will have limited choices, and the quality of care will diminish. Blue Cross is manipulating the system and have conspired with third-party servicers like Multi-plan to defraud many out-of-network providers by coercing them into servicing patients with authorization and then extorting the providers into contracts that only offer significantly reduced rates leaving them in an impossible position.
When deciding their health and the well-being of their families, patients want to be able to select their doctor based on their needs, not based on the insurance carrier’s pool of what they have to offer. Blue Cross forces patients to pay higher out-of-pocket costs for using out-of-network providers, ultimately, its practices increase costs and deprive patients of their right to choose their doctors.
Blue Cross and many large insurance companies pay lobbyists to help create laws that allow them loopholes to be able to get away with cheating their customers. Customers then purchase insurance policies that might not even cover them when they need it. When customers get frustrated and demand the insurance to pay or want to ring the alarm, the insurance company pays Medicare rate, instead of paying the UCR rates as they really should be. This doesn’t make any sense when insurance premiums increase annually, and coverage keeps decreasing.
California tax payers including patients, doctors, and facilities fund the Department of Insurance and the Department of Managed Healthcare (DMHC) so that they can ensure consumers of their healthcare rights and to protect consumers from being cheated. Yet these departments have ignored these insurance companies or are not aware of their tactics. These Departments should be protecting consumers and investigating these insurance payout processes because the insurance companies are working the system and using the loophole to scam customers of millions of dollars in premiums and paying out next to nothing or nothing at all. So the Dept of Insurance and DMHC should be protecting patients, instead of protecting the health insurance companies and letting them work the system.
If you are a medical provider or facility that feels you’ve been pressured by insurance companies to accept an unreasonable rate for your services, file your complaint with the Department of Managed Health Care by calling (888) 466-2219 https://www.dmhc.ca.gov/ or write to them at 980 9th St., #500, Sacramento, CA 95814. You can also contact the Department of Insurance at (800) 927-4357 https://www.insurance.ca.gov/ or your local political representative – who are no paid directly or indirectly by lobbyists for those private health insurance companies. You can also share your story with Truth Media or be referred for legal representation with a specialized attorney for your case against the insurance companies for illegal, coercive, unfair, fraudulent practices, bad faith, and deceptive advertisements by emailing info@truthmedia.news.
